Dick's Sporting Goods Earnings Hurt By Golf, Hunting

Dick's Sporting Goods (NYSE:DKS) tanked in the stock market after the sporting goods retailer fell short of fiscal first-quarter sales and profit views and trimmed its full-year earnings guidance.

Reporting before the open, Dick's logged earnings of 50 cents a share, up from 48 cents the prior year but below consensus estimates for 52 cents. It was the fifth straight quarter of single-digit or flat EPS growth following a long run of double-digit gains.

Revenue rose 8% to $1.44 billion for the quarter, which ended in April. That was below estimates for $1.46 billion. Same-store sales climbed 1.5%.

Dick's CEO Edward Stack said results were hurt by poor performances in the chain's golf and hunting categories.

"After a very challenging first quarter in golf last year, we expected some further headwinds and only modest improvement, but instead we saw a continued significant decline," he said in a statement. "In the case of hunting, we planned the business down based on last year's catalysts, but it was even weaker than expected."

Based on its expectation that the golf and hunting categories will continue to struggle, Dick's lowered its full-year earnings guidance to a range of $2.70 to 2.85 a share from prior guidance of $3.03 to $3.08. Before the revision, analysts polled by Thomson Reuters expected full-year profit of $3.08 a share.

Dick's, which operates more than 566 Dick's Sporting Goods locations across the U.S., also lowered its 2014 same-store sales growth guidance to a range of 1% to 3% from prior guidance of 3% to 4%.

The company's shares sank 18% to 43.60 Tuesday afternoon, hitting the lowest levels since December 2012.

Dick's has an IBD Composite Rating of 58, which means it outperformed 58% of all stocks based on a variety of fundamental and technical factors. It belongs to IBD's Retail-Leisure Products group, which ranks No. 173 out of 197 industries tracked.

Other sporting goods and outdoor retailers have been struggling as well.

Hibbett Sports (NASDAQ:HIBB), which has recorded two straight quarters of lower earnings, has seen its shares fall 14% since the beginning of 2014 even after a 4% spike on Monday. Shares of Big 5 Sporting (NASDAQ:BGFV) are down about 39% since the beginning of the year as it has also seen a slowdown in business.

Dick's Sporting Goods (NYSE:DKS) tanked in the stock market after the sporting goods retailer fell short of fiscal first-quarter sales and profit views and trimmed its full-year earnings guidance.

Reporting before the open, Dick's logged earnings of 50 cents a share, up from 48 cents the prior year but below consensus estimates for 52 cents. It was the fifth straight quarter of single-digit or flat EPS growth following a long run of double-digit gains.

Revenue rose 8% to $1.44 billion for the quarter, which ended in April. That was below estimates for $1.46 billion. Same-store sales climbed 1.5%.

Dick's CEO Edward Stack said results were hurt by poor performances in the chain's golf and hunting categories.

"After a very challenging first quarter in golf last year, we expected some further headwinds and only modest improvement, but instead we saw a continued significant decline," he said in a statement. "In the case of hunting, we planned the business down based on last year's catalysts, but it was even weaker than expected."

Based on its expectation that the golf and hunting categories will continue to struggle, Dick's lowered its full-year earnings guidance to a range of $2.70 to 2.85 a share from prior guidance of $3.03 to $3.08. Before the revision, analysts polled by Thomson Reuters expected full-year profit of $3.08 a share.

Dick's, which operates more than 566 Dick's Sporting Goods locations across the U.S., also lowered its 2014 same-store sales growth guidance to a range of 1% to 3% from prior guidance of 3% to 4%.

The company's shares sank 18% to 43.60 Tuesday afternoon, hitting the lowest levels since December 2012.

Dick's has an IBD Composite Rating of 58, which means it outperformed 58% of all stocks based on a variety of fundamental and technical factors. It belongs to IBD's Retail-Leisure Products group, which ranks No. 173 out of 197 industries tracked.

Other sporting goods and outdoor retailers have been struggling as well.

Hibbett Sports (NASDAQ:HIBB), which has recorded two straight quarters of lower earnings, has seen its shares fall 14% since the beginning of 2014 even after a 4% spike on Monday. Shares of Big 5 Sporting (NASDAQ:BGFV) are down about 39% since the beginning of the year as it has also seen a slowdown in business.

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